Hindustan Motors surges over 10% on selling iconic Ambassador brand to Peugeot

NEW DELHI: Shares of Hindustan Motors surged over 10 per cent in early trade on Monday after the company informed bourses that it has executed an agreement with European auto major Peugeot SA for the sale of the Ambassador brand, including the trademarks, for a consideration of Rs 80 crore.

The CK Birla group firm has inked an agreement with Peugeot SA to this effect.

The scrip was trading 11 per cent higher at Rs 12.22 around 9.25 am (IST). Shares of the company opened at Rs 12.80 and touched a high and low of Rs 12.80 and Rs 12.11, respectively, in trade so far.

Benchmark BSE Sensex was trading 61.34 points, or 0.22 per cent, up at 28,395.59 around the same time.

For the quarter ended September 30, 2016, the company reported a net loss of Rs 5.04 crore against net loss of Rs 6.35 crore in the corresponding quarter last year. Hindustan Motors is yet to announce their financial results for the quarter ended December 31, 2016.

It had reported a net loss of Rs 5.32 crore in the sequential quarter ended September 30, 2016.

For July-September period, the company posted revenue of Rs 0.01 crore against Rs 0.29 crore in the same period last year.